arXiv subjects

Eduard Talamàs

Publications and source records attributed to Eduard Talamàs.

3 recordsLinked to original sources

arXiv2026

The Turing Valley: How AI Capabilities Shape Labor Income

There is concern that progress toward AI systems with strong capabilities across domains will reduce the importance of human input in production and thus wages. We show that when knowledge is tacit and multidimensional, making AI less jagged can instead raise labor's marginal product. Tacit knowledge makes sequential problem solving efficient because problems cannot be assigned ex ante to the agent best equipped to solve them. When organizations cannot fully integrate human and AI knowledge across dimensions, improving AI where humans initially have an advantage can remove from the referral pool problems that would otherwise consume human time and remain unsolved. By concentrating scarce human time on problems humans can solve, better screening can raise labor's marginal product even as fewer problems require human input. Our results imply that the human-AI versus AI-only performance gap used to measure human contribution to output need not track the marginal product of labor.

econ.GN↗

arXiv2026

Robust Market Interventions

When can interventions in markets be designed to increase surplus robustly -- i.e., with high probability -- accounting for uncertainty due to imprecise information about economic primitives? In a setting with many strategic firms, each possessing some market power, we present conditions for such interventions to exist. The key condition, recoverable structure, requires large-scale complementarities among families of products. The analysis works by decomposing the incidence of interventions in terms of principal components of a Slutsky matrix. Under recoverable structure, a noisy signal of this matrix reveals enough about these principal components to design robust interventions. Our results demonstrate the usefulness of spectral methods for analyzing imperfectly observed strategic interactions with many agents.

econ.TH↗

arXiv2022

Taxes and Market Power: A Principal Components Approach

Suppliers of differentiated goods make simultaneous pricing decisions, which are strategically linked. Because of market power, the equilibrium is inefficient. We study how a policymaker should target a budget-balanced tax-and-subsidy policy to increase welfare. A key tool is a certain basis for the goods space, determined by the network of interactions among suppliers. It consists of eigenbundles -- orthogonal in the sense that a tax on any eigenbundle passes through only to its own price -- with pass-through coefficients determined by associated eigenvalues. Our basis permits a simple characterization of optimal interventions. A planner maximizing consumer surplus should tax eigenbundles with low pass-through and subsidize ones with high pass-through. The Pigouvian leverage of the system -- the gain in consumer surplus achievable by an optimal tax scheme -- depends only on the dispersion of the eigenvalues of the matrix of strategic interactions. We interpret these results in terms of the network structure of the market.

econ.TH↗